Early settlement offers

Drum_Master

Hi All,

Has anybody had any experience or can offer advice regarding the following.

After a few conversations with step change and a couple of other companies offering advice I have a decision to make regarding settlement offers.

If I continue in my current position I have been advised to declare bankruptcy. Fortunatly I am in a position where a 3rd party can lend me roughly a 3rd of my debt. I have 29k debt and can get 10-12k.

I was under the impression that the best option would be a lump sum IVA but was advised that a better option is to appraoch the companies myself in order to offer settlement and avoid an IVA.

From expeirnce can anybody give me any advice how I go about this? I have debts to 7 different companies.

1 Loan 14k
3 cc 5k
3 overdraft 10k

What would be a reasonable offer?

Additionally at th emoment I stand to not have a job past January 31st so if this is not accepted I may well have to file as bankrupt and the companies would than receieve no money. Do I mention this in my letter to the companies?

How long will a settlement affect my credit score for? This is surely of best interest for all parties.

Thank you in advance for any advice.

Kind regards

UpToMyNeckInIt

...so you are hoping to approach 7 different creditors, and offer 'informally' to pay off only a 3rd of your debt to each? ...Good luck with that!!! Great if all 7 accept, but I suspect it is highly likely that they will refuse this offer.

No doubt Stepchange, being a creditor-funded organisation, with eventually suggest relieving you of this £12K, and advise you repay the rest using a DMP - which will leave your credit rating in tatters for the duration of the DMP + 6 years after the final payment.

Providing this £12k is genuinely your best offer (ie: you have no prospect of affording to repay any more from your regular income), then a F&F IVA could be a way forward. I would also suggest that this solution (providing you can live with a damaged credit file for only 6 years), is your best one - based on the limited information you have provided.

Google 'insolvency practitioner reviews', and seek opinions from 2-3 different companies.

Good luck, and let us know how you get on.

Drum_Master

Yes I know I need luck but there is no harm in asking the question and if it is not accepted I will look to pursue the lump IVA route and if that fails I will pursue the bankrup route but that will be even worse for each of the companies. Currently in an IVA I could only pay back abot £7000 including fees over time so an offer of double that may be enough or they may negotiate and give me a target.

If all fails they also recieve no money so it is in the best interest for both parties. Also being backed by step change with proof of my finances and situation can only be of benefit to me.

Thank you for yoru feedback, it is all very helpful as I need to consider every route and angle.

I will be sure to update